India and the United States are actively engaged in advancing bilateral trade negotiations, with both governments working towards a comprehensive Bilateral Trade Agreement (BTA). The agreement aims to expand trade, enhance market access, and reduce tariff and non-tariff barriers.
MEA Official Spokesperson Randhir Jaiswal confirmed that discussions are ongoing, stating, “The two governments are actively working to build a framework for the BTA, which would aim to expand trade, enhance market access, reduce tariff and non-tariff barriers. The Government of India remains engaged with the US administration at various levels to arrive at a mutually beneficial multisector bilateral trade agreement.”
US on reciprocal trade and tariffs
On February 13, 2025, the United States issued a Memorandum on Reciprocal Trade and Tariffs. This directive instructs the Secretary of Commerce and the United States Trade Representative to investigate the impact of non-reciprocal trade arrangements by trading partners. The findings will be compiled into a report with proposed remedies for each trading partner, potentially leading to US action under relevant trade legislation, the PM Narendra Modi-led Central government told Parliament recently.
India not yet targeted by US tariffs?
As of now, the US has not imposed any country-specific reciprocal tariffs on India. However, additional duties on steel and aluminium imports have been levied across all countries, including India, without exemptions. These duties mark an increase over previous tariffs, with prior exemptions for certain major exporting nations now removed.
Impact on Indian exports
The Indian government is closely monitoring the impact of these additional tariffs on domestic industries. Minister of State for Commerce and Industry Jitin Prasada, in a written reply to the Rajya Sabha, highlighted that the government is evaluating the situation, particularly due to the absence of exemptions that were previously granted to some major exporters.